Future arbitrage, Financial Management

A futures contract is a contract to purchase (and sell) a particular asset at a fixed price in a future time period. There are two parties for every futures contract - the seller of the contract, who agrees to bring the asset at the particular time in the future, and the buyer of the contract, who gives consent to give a fixed price and take delivery of the asset. If the asset that underlies the futures contract is traded in the market and is not perishable then you can build a pure arbitrage if the futures contract is mispriced.

 

 

Posted Date: 7/25/2012 7:46:21 AM | Location : United States







Related Discussions:- Future arbitrage, Assignment Help, Ask Question on Future arbitrage, Get Answer, Expert's Help, Future arbitrage Discussions

Write discussion on Future arbitrage
Your posts are moderated
Related Questions
To begin this topic, the case of China Sky describes the appointment of a special auditor  in the organization that is also a rule in the procedures of Singapore Exchange (SGX). Th

knowledge of financial market is power discuss

Explain Swap Dealer A swap dealer is a market maker of swaps and predicts a risk position in matching opposite sides of a swap and in making sure that every counterparty fulfil

importance of Leverage

Brainstor ming An idea production strategy that exclusively encourages any and all alternatives while withholding any appreciation of those options.

Gary and Joyce Yau, both 30, last month bought their dream house in London, Ontario. The purchase price was $450,000 plus addition fees such as taxes, legal fees, administration fe

Describe the difference between a parallel loan and a back-to-back loan. Answer:  A parallel loan contains four parties.  One MNC (multinational company) borrows and re-lends to


Method to Identify the Component of Seasonal Variation in a Time Series This technique is called as Ratio to Moving Average Method. In this technique, we construct an index wh

fixation of selling price